UCC Vs. EASTERN COALFIELDS LIMITED

JUDGEMENT

(1.) The petitioners were successful in a tender for hiring of Heavy Earth Moving Machinery and Extraction of Coal and was awarded contract accordingly. The petitioners argue that the work was completed in June, 2022 and a Job Completion Certificate was issued to the petitioners on November 19, 2022. However, thereafter the respondents are withholding not only the final bills but also the performance security and retention amounts, contrary to the terms of the contract.

(2.) Learned counsel for the petitioners places reliance on Clause 4.7 of the General Terms and Conditions (GTC) which provides for refund of security deposit subject to the company's right to deduct/appropriate its dues against the contractor under the present or other contract. As per the said clause, on completion of the entire work and certified as such by the engineer-in-charge, one half of the security deposit remaining with the company shall be refunded. The other half shall be refunded to the contractor on the expiry of six months performance guarantee period from the date of completion as certified by the engineer-in-charge. However, the same is subject to certain conditions including that if any defect was detected within the defect liability period of six months, the same is to be rectified by the contractor.

(3.) A Chart has been annexed to the writ petition in respect of the perceived dues of the petitioners from the respondents.